Analysis: The main reason for this big dump in the crypto market is the indication of interest rate hikes by the Bank of Japan and market concerns about the potential "big dump" of Strategy.

On December 2, Bitcoin briefly fell below $84,000, dropping over 8% at one point, and the total market capitalization of crypto fell below $3 trillion, with $974 million liquidated across the network in the past 24 hours, of which $851 million was from long orders, affecting over 260,000 people. In response to this big dump in the crypto market, Arthur Hayes stated that the reason is the Bank of Japan hinting at a possible rate hike in December. The USD/JPY exchange rate has fluctuated between 155-160, indicating a hawkish stance from the Bank of Japan. Maclane Wilkison, co-founder of Threshold Network, stated, 'The Bank of Japan's signal of an impending rate hike has tightened global liquidity expectations and shaken risk assets.' Additionally, Phong Le, CEO of Strategy, mentioned that they would only consider selling Bitcoin if the company’s stock price fell below its net asset value and could not obtain new funding. The market is concerned that Strategy may be forced to sell coins due to a lack of cash to pay dividends as Bitcoin prices weaken. Previously, S&P Global Ratings downgraded the stability rating of Tether's USDT from 'restricted' to 'weak,' warning that a drop in Bitcoin prices could lead to collateral shortfalls for the stablecoin. Arthur Hayes stated that if the 'gold + BTC position' falls by about 30%, it would wipe out their equity capital, making USDT theoretically insolvent. In response to 'Tether FUD,' Tether CEO Paolo Ardoino stated that the group's own equity is close to $30 billion. S&P did not consider additional group equity in its analysis, nor did it account for the approximately $500 million in monthly base profits from U.S. Treasury yields alone. Boris Revsin, general partner and managing director of Tribe Capital, described this as a 'leverage washout,' creating a chain reaction throughout the market. Meanwhile, the macro environment has also become less friendly: short-term rate cut expectations have faded, inflation remains stubborn, the job market is weakening, geopolitical risks are rising, and consumer pressures are increasing. This series of factors has led to weak performance of most risk assets over the past two months. William Stern, founder of Cardiff, stated, 'With just over a week until the Fed meeting, inflation data remains unclear, and institutional investors are actively reducing risk. They are reluctant to hold volatile assets like Bitcoin to avoid hawkish statements from Powell.'